Representing a Growth in Operational Savings of 3,400% from
2019

A new study from Juniper Research has found that the
operational cost savings from using chatbots in banking will reach $7.3 billion
globally by 2023, up from an estimated $209 million in 2019. This represents
time saved for banks in 2023 of 862 million hours, equivalent to nearly half a
million working years.

According to the new research, AI in Fintech: Roboadvisors,
Lending, Insurtech & Regtech 2019-2023, chatbots can reduce excessive
operational costs in financial services, by resolving customer queries in a
fully automated way. As NLP (Natural Language Processing) evolves and domain
expertise is added to AI systems, chatbots are demonstrating a proven record of
seamless service delivery, which will drive adoption by initially sceptical
financial institutions. This is reflected in a growth of nearly 3,150% in
successful banking chatbot interactions between 2019 and 2023.

For more insights, download the free whitepaper: Why AI is
Revolutionising Financial Services.

Chatbots in Banking Applications Becoming Dominant

Chatbot integration in mobile banking apps will be the
dominant channel for chatbot-driven customer communications, accounting for 79%
of successful interactions in 2023. This dominance is due to several reasons,
primarily an increase in user preference for app-based banking, as well as the
strong performance of early banking chatbots, such as Bank of America’s Erica.

Research author Nick Maynard explained: “Chatbots in banking
allow heavily automated customer service, in a highly scalable way. This type
of deployment can be crucial in digital transformation, allowing established
banks to better compete with challenger banks”.

Insurance Claims Assessment Revolutionised by AI

The research also found that AI, including chatbots, will
have a highly disruptive impact on insurance claims management, leading to cost
savings of almost $1.3 billion by 2023, across motor, life, property and health
insurance, up from $300 million in 2019.

Chatbots can automate post-incident data
collection, with AI used to analyse the details/images provided using computer
vision. These methods will not only save money for insurers, they will also
reduce time to claim settlement, improving customer loyalty.